'The numbers just don't add up': Fresh fears over Suffolk's cost of living crisis

The Resolution Foundation's report was released as one debt coach said that already for many people "the numbers just don't add up".

The think-tank warned that real household incomes across Britain could fall by 4% for working age people in the financial year 2022 to 2023, marking the biggest squeeze since the mid-1970s.

This means households would see their real-term income fall by £1,000 as prices rose.

Laura Knight, manager of Suffolk Coastal Debt Centre, said she was now seeing more people struggling because "they literally don't have enough money coming in to cover the basics".

She said: "The traditional thought is that people get into debt because they've mismanaged things.

"But actually, what we're seeing is that it's not so much mismanagement as the numbers just don't add up.

"People can't afford to put the heating on and to feed themselves and do all these things.

"It's particularly families. A lot of people are trying to put their children first and trying to make sure that they're OK, and that's when debts are wracking up because they don't have enough money coming in to cover the basics."

Ms Knight, who worked in Streatham, south London, as a teacher said rural poverty presented different challenges to urban poverty.

She said: "It's more isolating, it's harder to access support, it just seems to be much more hidden.

"I think it's often easier to access support and help in the cities. In my experience, people are perhaps more reluctant to access support in rural areas – it certainly seems that people are maybe a bit more scared to ask for help."

Inflation is spiking in the wake of war in Ukraine. (Image: PA Wire/PA Images)

One driver of inflation identified by the Resolution Foundation report is the war in Ukraine.

It said: "The crisis in Ukraine has increased both the scale of price rises but also the degree of uncertainty about their levels and duration. So far, the conflict has substantially increased the price of oil and natural gas.”

The price of wheat, one of Ukraine’s largest exports, hit a 14-year high last week and this is affecting Suffolk businesses.

Kieron Palmer, owner of Palmers Bakery in Haughley, said the price hikes were starting to be felt on the 152-year-old family-run business.

Palmers Bakery in Haughley. Kieron Palmer using the ancient brick ovens (Image: Archant)

He said: "We've been told today that wheat will be doubling in price.

"Last week, we saw the price of bread has gone up twice in one week.

"Almond macaroon paste has gone up by £10 per bucket – from £27 to £38."

Mr Palmer said the bakery had also seen oil and electricity costs go up, as well as increasing wages to keep up with inflation.

In total, he estimated that costs for the business had risen by around £3,000-£4,000 a week.

To make back this money Mr Palmer said the business had put its prices up, looked for alternative suppliers, and "had to part company with some members of staff".

The conflict has also seen fuel prices spike.

Adam Searle, boss of Felixstowe-based CP Transports, said his weekly fuel bill had risen £4,000 since Russia invaded Ukraine.

The fuel price hike will be passed on to consumers (Image: PA Wire/PA Images)

"I think we're about 10p a litre up on where we were a week ago," he said.

"It has been a steady increase for the last month anyway, for just other reasons.

"We have a fuel escalator to our customers, and we pass it on, but ultimately, it's reflected in the cost of goods when someone's paying for them."

Mr Searle said these increased costs would end up being paid on many household items from furniture to fridges and freezers.

"I wouldn't be surprised if it escalates and gets worse week on week," he said. "A short, sharp shock now it's painful, but what does the future hold?

"We could see £2 a litre in a month or two if the conflict isn't resolved."

If you need help managing your money, get in touch with Suffolk Coastal Debt Centre on 0800 328 0006.